EFFECT E-SERVICE QUALITY ON CUSTOMER SATISFACTION AND IMPACT ON REPURCHASEIN LAZADA INDONESIA’S ONLINE
SELLING IN THE CITY OF SEMARANG
Amelia Saraswati1, Farida Indriani2
Department of Management, Faculty of Economics and Business, Diponegoro University Jl. Central Erlangga No. 17 Semarang 50241, Tel (024) 8449010, 8441636
Abstract: This research was conducted by researching the gap between the relationship between e-service quality and customer satisfaction and its effect on repurchase interest. The study was conducted to see whether all variables of electronic service quality (usage, website design, responsiveness, personalization / customization, and assurance) had an effect on the total service quality and customer satisfaction which could lead to repurchase. The analysis technique used is SEM (structural equation modeling) with the number of respondents as many as 197 Lazada customers in the city of Semarang. The results of the criteria for goodness of fit RMSEA = 0.066; NFI & NNFI = 0.96 & 0.94; IFI = 0.92; and RFI = 0.93. These results indicate that the model has a good fit and is feasible to use. Based on the research results, there are four hypotheses that have a positive and significant effect, namely, web design, responsiveness, customization, and customer satisfaction on repeat purchase intention.
However, there were two objections that were rejected, namely the use of (ease of use) and assurance (assurance) of repeat purchase intentions.
Keywords: e-service quality, customer satisfaction, repurchase intentions, Lazada.
INTRODUCTION
The existence of technology that is growing rapidly and is deemed necessary to support most human activities. One technology whose existence is considered important is the internet. The internet is a very fast media medium in the process of disseminating information. The growth of the internet is growing, but it must be admitted that the existence of the internet is not only used to exchange information, but also affects economic growth, one of which is the process of selling and buying goods. The process of selling and buying transactions is usually done face-to-face and has now become easy with the internet. This convenience is usually done through an online platform or what is usually called e-commerce.
E-Commerce(electronic commerce) or electronic commerce is a business process that utilizes the internet network and connects sellers, buyers, and the wider community in activities of exchanging or selling goods or services and information through electronic transactions (Fuady, 2005). The success of the electronic trading system in Indonesia stems from the enthusiasm of the people who want practical shopping. If in the past distance and time were an obstacle to the relationship between buyers and sellers, the existence of an
online buying and selling system can make it easier for people to purchase goods and services because they can be accessed anywhere without limited time. With the various benefits and flexibility offered, online shopping is now increasingly popular with Indonesians.
As one of the e-commerce players in Indonesia, Lazada is a popular online store. Lazada Indonesia, which has grown since 2012 by providing various products consisting of electronic products, household appliances to fashion products. Lazada is an e-commerce that applies the concept of Business to Customers (B2C) by collaborating with product suppliers which are then sold to customers under company supervision so that they can control ongoing transactions.
E-serviceis an important factor that can affect repurchasing on e-commerce, one of which is Lazada. Based on research conducted by Parasuraman et al. (1988), service quality is based on the fact that customers usually assess service quality by comparing their expectations with the reality received from services from certain product providers. Service Quality is fundamental and must be taken seriously by the company. Service quality can be seen from the assessment provided by customers by comparing the company's performance and customer expectations. Ribbink et al., (2004) and Van Riel et al., (2004) state that the effect of these dimensions on customer satisfaction. According to (Ribbink et al., 2004; Srinivasan et al., 2002; Wolfinbarger and Gilly, 2003; Yang et al., 2003; Zeithaml et al., 2002) there are five key dimensions in service quality, namely ease of use of the site, website design, responsiveness, personalization, and assurance.
According to Morris and Turner, (2001) and Ribbink et al., (2004) the dimension of ease of use of the site (ease of use) is an important factor of site use by both existing and new customers. Even ease of use also determines customer satisfaction, because it is considered to be able to increase the efficiency of using the service.
Van Riel et al., (2004); Wolfinbarger and Gilly (2003) suggest that in creating a satisfaction, web site design is considered important because it is usually directly related to the user interface. According to Luo et al., (2006) this dimension also assumes that web site design directly affects consumers about their feelings about the system. According to Voss (2000) the responsiveness dimension is identified as a high quality service dimension. This dimension is measured by the willingness and ability of the company to provide fast service when customers have problems / questions, but usually in practice, many companies fail in this dimension. This study aims to determine whether e-service quality can influence repurchase interest in buying the desired product by the buyer.
LITERATURE REVIEW AND HYPOTHESIS RELATIONSHIPS E-commerce
Turban et al., (2016) and Khaneghah et al., (2017) stated that E-commerce is one of the most important systems and is developed in the context of the internet. E-commerce is designed to remove restrictions and constraints related to transactions at a certain time and space.
Whereas the nature of traditional trading is such that transactions must occur at the right time and space so that the needs of sellers and buyers will be met, this was conveyed by Turban et al., (2016) and Lin et al., (2017). Currently e-commerce tries to add the ability to transact anytime and anywhere with traditional trading through the use of the internet network. The development of traditional commerce through e-commerce means that transactions are not limited to a certain time and space.
B2C E-Commerce
According to Jiang, Guo and Wu (2016) B2C includes retail transactions with products or services from businesses to buyers. B2C-based e-commerce has a central role because it is customer-based and has many service providers and vendors. Thus, each company must provide what services can be considered and which vendors so that customers can choose the company to transact, this opinion is conveyed by Nyadzayo and Khajehzadeh (2016).
E-Service Quality
The definition of service quality conveyed by Parasuraman et al ,. (1998) has been widely used as an attempt to compare service excellence to consumers. Bitner (1990) defines service quality as a sign from consumers about the inferiority / superiority associated with service providers and their services who have the same opinion about the attitudes of all consumers towards the company. The word 'attitude' includes both the quality of the results and the quality of the process. Likewise, Rushton and Carson (1989) have referred to quality of results as what customers actually receive and process quality as the way services are delivered. However, customers tend to find it difficult to evaluate services because they have a lot of experience.
Ease of Use (Ease of Use)
According to Davis (2004), it is a level regarding a person's belief about the usefulness of a system that can facilitate consumer businesses in carrying out activities. Frequent usage between use and interaction by the user and the system can indicate an ease of use of the system. The system will be better known if it is used frequently and will be easier to use by users if it is operated frequently.
The measure of ease of use is considered a barrier-free system. The easier the system is to learn and the easier it is to understand and use, the more it will make the system make a good impression in the eyes of its users. In research conducted byN. Kassim & Abdullah (2010)said that ease of use is closely related to customer satisfaction. Thus, if the company makes it easy for a system to be operated and used by users, then these users will feel more and more satisfied with the services that have been provided by the company.
From the description above, the hypothesis that can be taken is:
H1 = ease of use has a positive effect on customer satisfaction.
Website Design (Web Design)
Website design is an important element because it is considered a medium for face-to-face interaction between users. According to (Van Riel et al., 2004; Wolfinbarger and Gilly, 2003;
Zeithaml et al., 2002) argues that to make a satisfaction an attractive site design is needed.
This dimension includes content, visually appealing, attractive and pleasing to the eye and the website and the organization.
In addition, the site design is designed as attractive as possible to please the eye as well as provide information to users. If within a few minutes the user does not find the required information on the site, it will be left because they feel useless. It is different if the site design can provide information easily to users, it will please the user and satisfy his needs. This is supported by opinionN. Kassim & Abdullah (2010) which reveals that site design has an influence on customer satisfaction.
From the description above, the hypothesis that can be taken is:
H2 = website design (web design) has a positive influence on customer satisfaction.
Responsiveness
Responsiveness is the desire to help consumers and provide services as soon as possible. The standard used must be in accordance with the response speed desired by consumers with consumer perceptions of speed. The standard used must be in accordance with the demand for response speed desired by consumers and consumer perceptions of speed and not based on company standards. Just like the company's desire for services to help consumers, companies are required to provide immediate services to consumers, the suitability of services to consumers and the speed with which the company provides services needed by consumers.
Responsiveness can be interpreted as the response or dexterity of employees providing assistance to customers and providing fast service. The more responsive the company is, the more problems faced by customers will be resolved immediately. However, this opinion is different from the research conducted byN. Kassim & Abdullah (2010) get the result that responsiveness has no effect on customer satisfaction.
From the description above, the hypothesis that can be taken is:
H3 = responsiveness has a positive effect on customer satisfaction.
Customization / Personalization (Customization)
Chung and Shin (2008) state that: If a company is able to accurately adjust or narrow down choices for individual customers, it can minimize the time customers spend going through the entire product to find exactly what they want. It seems to be hopeful that Online Shopping customization will positively impact e-satisfaction. This opinion suggests that companies can specify customer needs, which can increase the time it takes for consumers to find what products to offer and to find out what can be done with what consumers really need. It can be concluded that Customization has a positive impact on E-Satisfaction. This causes consumers to easily and quickly carry out product specifications for the products being offered.
However, it is different from the research that has been done byN. Kassim & Abdullah (2010) which states that customization has no effect on customer satisfaction.
From the description above, the hypothesis that can be taken is:
H4 = customization has a positive effect on customer satisfaction.
Assurance
Parasuraman et al., (2003) guarantee is the ability, knowledge, politeness and trustworthiness possessed by employees. Nasution (2004) argues that assurance is the attitude of employees who are considered to be able to foster trusting behavior by customers in the company because it can create a sense of comfort and safety for their customers.
Research that has been done (Kassim & Abdullah, 2010) It is true that assurance has an effect on customer satisfaction, because if the customer feels safe and comfortable in the transaction, it will cause a sense of satisfaction that cannot be measured.
From the description above, the hypothesis that can be taken is:
H5 = Assurance has a positive effect on customer satisfaction.
Customer Satisfaction
Opinion (Johnson et al., 2001; Liu et al., 2007) that the cumulative perspective is better for evaluating firm service performance, and is also more effective at predicting customer post-
purchase behavior. Thus, it adopts a cumulative perspective and (Cronin et al., 2000;
Maxham and Netemeyer, 2002; Seiders et al., 2005) defines customer satisfaction as “an overall evaluation of past experiences with products or services purchased from a shopping website” . Many studies have concluded that customer satisfaction is positively related to repurchase intention (e.g. Brady et al., 2001; Cronin et al., 2000; Johnson and Fornell, 1991;
Zeithaml et al., 1996), and is a determinant of long-term repurchase. (Ranaweera and Prabhu, 2003). That is, Higher satisfaction can lead to higher repetitive purchase intentions and frequencies (Maxham and Netemeyer, 2002; Seiders et al., 2005). Similar results were found among studies of e-retailing and online shopping (Collier and Bienstock, 2006; Lee and Lin, 2005).
From the description above, the hypothesis that can be taken is:
H6 = Customer Satisfaction has a positive effect on Repeat Purchase Intentions.
Repeat Purchase Intentions
According to (Lin and Liang, 2011; Jones and Sasser, 1995; Seiders et al., 2005) repurchase intention is the level at which customers are willing to buy a similar product or service and a simple, objective, and observable predictor of future purchasing behavior. front. The customer's repeat purchase intention is very important to save profitability. Product or service providers can thus effectively increase profits and reduce costs as long as they can successfully retain existing customers and drive their repeat purchase intentions. Consumer purchase intention is very important in predicting consumer behavior which obviously depends on the influencing factors which make measurement difficult under different circumstances.
THEORETICAL FRAMEWORK
From the literature review and the basics of existing theories and an understanding of previous research that is based on the hypothesis and its construction, a research model is formed as follows:
Picture 1
Theoretical Framework
Hypothesis
H1 = ease of use has a positive influence on customer satisfaction.
H2 = website design (web design) has a positive influence on customer satisfaction.
H3 = responsiveness has a positive effect on customer satisfaction.
H4 = customization has a positive effect on customer satisfaction.
H5 = Assurance has a positive effect on customer satisfaction.
H6 = Customer Satisfaction has a positive effect on Repeat Purchase Intentions.
RESEARCH METHODS
According to Sugiyono (2013) primary data is data that can be obtained directly from the source. In this study, the data were obtained directly from respondents who had made purchases at Lazada.
Population and Sample
Sugiyono (2010) states that the population is a collection of individuals consisting of objects or subjects and have certain characters and are determined by the researcher. The population in this study are people who live in the city of Semarang and have made purchases at Lazada for the past year which have an age range of 17-30 years.The sample size in statistical methods provides a basis for estimating the benchmarks of sampling error by adjusting the sample size between 100-200. Hair (1995) states that the suitable sample size used in SEM calculations is 100-200. If the estimated parameter is 20, then the number of samples used is at least 100.
RESULTS AND CONCLUSIONS
Effect of Ease of Use on Customer Satisfaction
In this research, ease of use has no effect on customer satisfaction. All sites will try to make their sites as easy as possible to be used by everyone who comes to them, especially in e- commerce sites. Customers who have frequently used a site feel familiar or familiar with the layout and layout of the website so that they will not experience difficulties using the site.
Thus the convenience for all users makes there is no difference between one user and another so that there is no effect of ease of use on customer satisfaction.
Effect of site design on customer satisfaction
If within a few minutes the user does not find the required information on the site, it will be left because they feel useless. It is different if the site design can provide information easily to users, it will please the user and satisfy his needs. A site with an attractive design will make it easier for customers to surf and also find the products they need. The better the site design a website has, the more satisfied customers will be in using the website.
These results are consistent with research which states that site design has a positive effect on customer satisfaction.
The Effect of Responsiveness on Customer Satisfaction
Responsiveness can be interpreted as the response or dexterity of employees providing assistance to customers and providing fast service. The more responsive the company is, the more problems faced by customers will be resolved immediately. Consumers who feel that the complaints they raise are responded to well by the site will feel that their needs are met so
that their satisfaction will increase.
Effect of Customization on Customer Satisfaction
Customization has a positive effect on customer satisfaction. If a company is able to accurately adjust or narrow down choices for individual customers, it can minimize the time customers spend going through the entire product to find exactly what they want. This opinion suggests that companies can specify customer needs, which can increase the time it takes for consumers to find what products to offer and to find out what can be done with what consumers really need.
The Effect of Guarantee on Customer Satisfaction
Guarantee has no effect on customer satisfaction. Guarantee is the attitude of service providers which is considered to foster trusting behavior by customers towards the company because it can create a sense of comfort and safety for their customers. The guarantee provided by a product provider in e-commerce is on average already standard because it contains requirements that have been agreed upon by the provider and its customers. The guarantees obtained by each customer contain the same promises as other customers.
Customers also understand that in buying and selling online, there will be many possibilities for errors in delivery or product errors from the seller. So that the guarantee cannot be expected to reduce this risk. This condition means that there is no guarantee effect on customer satisfaction.
Effect of customer satisfaction on repurchase intention
Customer satisfaction has a positive effect on repurchase interest. PThe company always strives to pursue customer satisfaction as essential to gaining sustainable growth and a competitive advantage. Customer satisfaction can be defined from a transaction-specific and cumulative perspective. Customer satisfaction is an evaluation based on recent purchasing experience, whereas the latter emphasizes a holistic evaluation of all aspects of consumption, suggesting that customer satisfaction is an evaluation made on the basis of all customers. The satisfaction indicated by the fulfillment of the needs of the customer by the product provider shows that the customer feels that his needs are met which makes him satisfied, so that the interest in making repeat purchases will increase.
SUGGESTION Research Limitations
1. In this study, researchers only used an age range from 17-30 years old so that they did not include all the ages of users for existing online stores.
2. In this study only included respondents with the provisions of domicile in the city of Semarang.
Suggestions for Future Research
1. In future research, a more diverse age range of respondents can be used.
2. In future research, researchers can use respondents from outside the city of Semarang so that the results and comparisons can be seen.
3. In future research, researchers can develop variables that have not been used by researchers in this study, so that the results can be developed again.
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